Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Rich Anderson – BMO Capital Markets.
Rich Anderson – BMO Capital Markets
On the run rate you have been able to achieve on renewals over 7%, I assume you are kind of burning off that opportunity as you roll leases so I was wondering what you see as a timeline for that type of number to maintain itself?
David Emery
The average lease term is 4-5 years so in the abstract you are turning 20% kind of a year which we have historically done. Outside of some blips in different years where you have more like when we buy a large portfolio I don’t see any reason why that would change.
Rich Anderson – BMO Capital Markets
As it relates to your retention rate of 95%, would you be able to comment on what a new lease rate would be relative to that 7%? Is it higher or lower?
David Emery
On the retention?
Rich Anderson – BMO Capital Markets
If you are retaining 95%...
David Emery
You mean are we giving them concessions and stuff?
Rich Anderson – BMO Capital Markets
I was wondering if your retention was lower that might be actually an opportunity because you can get a better number on a new lease. Is that true?
David Emery
You have heard me say before there is one good thing about our portfolio is nobody ever moves. One of the worst things about our portfolio is nobody ever moves. So, I think that it is just a balance.
B. Douglas Whitman II
Remember too this year we have a disproportionate number of hospital occupied spaces. As you may recall in 2004 we did a lot of acquisition activity and a lot of the leases signed at the time with the hospital for their stint was 5 years. So those spaces are coming up for renewal. These are typically going to be the hospital outpatient department, breast imaging, and surgery and so on. Those leases are going to renew at a slightly higher rate than the typical physician practice. So you are going to see a very high number of leases renewed and we expected that.
Rich Anderson – BMO Capital Markets
Scott, on some of the refinancing you are doing I am particularly interested in the secured facility in 2012. I think I have that right, correct?
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